He said in this scenario he would not increase taxation on the oil industry and would want a "competitive business tax regime to attract business to Scotland".

This, he said, would help businesses and "grow the economy and thereby grow the tax base".

Mr Swinney added: "The purpose of that is to increase the tax take by delivering a stronger and bigger economy."

With the Scottish Government's funding of colleges coming in for particular criticism, Mr Swinney conceded he had had to make "some difficult decisions right across the different areas of public expenditure".

Further education had been facing a budget cut of £34.6 million. Mr Swinney announced an additional £10 million of cash for the sector for next year, so spending in this area will now fall by £24.6 million.

The £10 million will come from additional money due to Scotland as a consequence of the Chancellor's Autumn Statement.

In addition, a further £51 million will be given to colleges in 2014-15.

Mr Swinney said the funding should "give clarity and stability to the college sector" which is currently undergoing a series of reforms, including college mergers.

But he added: "The Government has judged there is the scope to deliver a lower college budget, but to deliver stronger outcomes for the people who go through the college sector."

He said the additional funding in yesterday's Budget had been awarded in response to pleas from some in the sector, as well as opposition politicians

"When governments acknowledge that they've got to move, they've got to change, they've got to do things to deliver a different outcome, perhaps opposition parties should give them a bit of credit for doing so," he said.

But Labour finance spokesman Ken Macintosh argued that the Finance Secretary should have found £34.6 million for colleges to prevent the sector from having its budget cut.

He branded the additional £10 million as a "token gesture", and told BBC Radio Scotland: "I'm quite cynical - I think it's an actual tactic they use now.

Tory Gavin Brown told the same programme his party too would restore the college cuts in full, arguing: "At a time of high unemployment I think getting money into colleges has to be a priority."

Mr Brown also said housing would still receive an "pretty substantial cut" in its budget, despite the additional £38 million Mr Swinney pledged yesterday.

He added: "We think housing has to be an absolute priority when the housing sector is on its knees.

"There is a cash increase in next year's budget from Westminster, the Scottish Government will have £7 million more to spend next year than they had this year.

"That's a small increase, I accept, but it is an increase nonetheless."

Liberal Democrat leader Willie Rennie claimed the £10 million additional cash for colleges was "simply not enough" as he branded it "an insult".

The Lib Dem told Good Morning Scotland: "The college principals I've met are just spitting mad about the treatment. They deserve better at this time because they can train the people for the jobs so we can start restoring this economy.